It shouldn't put the company at risk, whether it be financially or otherwise.

This could apply if there's a drop in the economy, don't commit to paying out incentives.

Rule#4:

It should be reviewed regularly.

For example, if workers are awarded based on monthly performance, then reward them during the following month.

Rule#5:

There should be clearly laid-out rules for the scheme.

For example:

· Incentives will only be paid out for performance criteria which the employee directly contributes towards; and
· Incentives won't be paid with other guaranteed bonuses or at the same time as annual increases; etc.

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